Key Highlights

  • Disclosure on November 7, 2026 showed Berkshire Hathaway (NYSE:BRK.B) buying back USD 9.6 billion of its stock during the third quarter, in addition to USD 4.8 billion earlier this year.
  • Roughly USD 2 billion more went out during October's opening four weeks, which sets 2026 up as one of the biggest repurchase years in the company's history.
  • Operating Earnings declined 6% to USD 12.71 billion, or near USD 8,954 for each Class A share, as Revenue climbed 11% to USD 105.65 billion.
  • Cash and cash equivalents dropped to USD 356.9 billion by late September, down from USD 380.2 billion in late March, since Greg Abel's Leadership team deployed more money.

A New Approach to Deploying Cash

The buyback pace is the clearest sign yet of how Berkshire is changing under Abel, who took over as chief executive when Warren Buffett stepped aside at the close of 2025 and has now finished three quarters in the post. Buffett, who is chairman emeritus, rarely repurchased shares in recent years, saying Buybacks should only occur when the price sits below intrinsic value. Abel has displayed a greater readiness to put the cash pile to work. Apart from repurchases, Berkshire paid USD 6.8 billion in July for homebuilder Taylor Morrison, bought billions of dollars' worth of Alphabet shares this year and acquired a 4% position in the Italian software firm Bending Spoons. The buyback record is still 2021's USD 27 billion, yet the year-to-date tally through October already exceeds USD 16 billion.

Insurance Weakness Versus Stronger Railroad and Energy Units

Insurance was the biggest drag. Underwriting profit dropped 43% and total insurance profit fell 26%. Geico's pretax profit declined 45% as accident losses climbed, Advertising outlays grew and the insurer cut rates to regain policyholders it had lost while working to strengthen underwriting over several years. Its loss ratio went up to 76.6% from 71.5%. Other operations performed better. BNSF railroad profit increased 19% to USD 1.73 billion on fuel surcharges and heavier volumes, and Berkshire Hathaway Energy brought in USD 1.61 billion, up 8%. Precision Castparts reported a 30% jump in pretax profit driven by Demand for aerospace parts and industrial gas turbines. Consumer units were mixed: Brooks and Duracell sales grew, whereas Fruit of the Loom and Forest River faced softer demand. Net Income shrank 28% to USD 22.11 billion as Equity holdings produced smaller gains.

Valuation Signal From Heavy Repurchases

Repurchases of this size imply management views the shares as cheap relative to the worth of the businesses, despite a strong run. The stock touched record highs in the week of the report and had gained over 13% in 2026 through November 6, beating the S&P 500 by more than five points. The firm's equity holdings remain sizable at USD 335.5 billion as of September 30, and its cash balance ranks among the largest held by any company. The company warned of considerable uncertainty tied to economic and geopolitical developments, including tariffs and wars. Observers will track whether the pressure on Geico margins proves temporary, whether repurchases continue into the fourth quarter and how Abel deploys the leftover cash in a market where large deals are hard to find.

Where Things Stand

Under Greg Abel, Berkshire's third quarter revealed heavier reliance on repurchases and deals, with USD 9.6 billion bought back during the period and roughly USD 2 billion more in October. Operating profit dropped 6% to USD 12.71 billion, largely because Geico and other insurance businesses generated less. The cash reserve is getting smaller yet is still substantial, and the next checkpoint is the fourth-quarter report due in early 2027.